JSC ENERGO-PRO Georgia - Significant increase in electricity tariffs is inevitable

28 December, 2020

"We can already conclude that an increase in the consumer tariff is unfortunately necessary. It should be noted that the current tariff was set for January 1, 2018 for a period of 3 years. The current tariff, for objective reasons, has long been unable to reimburse dramatically increased costs for electricity purchases or other directions. We have been in a severe financial crisis for 10 months now, we have had to abandon all development plans, significantly reduce investment projects, even it became complicated to finance the salary fund. Despite these difficulties, with the help of the founding group and the banking sector, we were still able to meet our obligations and maintain all our employees. However, such a reduction of investment projects, naturally has a negative impact on the quality of service and the indicators of uninterrupted electricity supply, "- said the director general of the company Mikheil Botsvadze.

As for the subsequent tariff, it is first emphasized that the tariff increase should not be perceived as a requirement of the company. "We are all aware of the sensitivity of the issue and the social factor. Moreover, a significantly increased tariff will lead to an increase in problem debts or various risks for us. However, on the other hand, if the purchased electricity costs and necessary investment projects are not fully funded, the company simply can not continue to operate, the issue of electricity supply will be at risk, and this will primarily harm the interests of the customers, "- said Mikheil Botsvadze.

"Of course now it is the turn of the Electricity Regulatory Commission, we put the full responsibility upon them.  For the last several weeks we have sever debates on each parameter, which causes tariff correction, there are number of disagreed issues. We want to believe that the decision of the Regulatory Commission will be balanced and adequate to the difficult situation, there is simply no other way, all resources are exhausted! "- said the Director General of the company.